Ledger, the leading manufacturer of virtual currency hardware wallets, will start providing institutional custody of Bitcoin and Ethereum-based tokens.
This has been made possible after the wallet manufacturer inked a partnership with Legacy Trust, a trust and custody firm that has its operating licenses issued in Hong Kong. While speaking to Coindesk, the virtual currency hardware manufacturer and the custody firm said that their goal is to help institutions to easily and securely invest in cryptocurrencies.
Ledger will be deploying Ledger Vault, a multi-sig product it developed purposely for this function. The solution will first provide institutional custody of Bitcoin and Ethereum-based tokens “securely and efficiently.”
Vincent Chok, CEO, Legacy Trust, said:
There is [a] huge interest in ERC-20 [Ethereum-based tokens] custody services and it’s only growing bigger. Every STO [Security Token Offering] that is planning to take place will need to have custody for ERC-20 tokens. Since the beginning of 2019, we’ve basically received around five requests for ERC-20 custody, per week.
For Demetrios Skalkotos, the head of Ledger Vault, having a common goal with Legacy Trust will translate to peace of mind, convenience, and security for the investors. As per Ledger Vault’s website, Ledger Vault supports more than 15 digital currencies which include Bitcoin Cash, Zcash, Bitcoin, and Litecoin. Ledger indicated that it would be developing the crypto wallet management product early last year. By the time, Ledger had hedge funds and traditional financial institutions in mind.
In the recent past, virtual currency custody services aimed at institutions have been on the rise. For example, G4S, a security company based in the United Kingdom but with a global presence, entered the scene at the beginning of the last quarter of 2018.
Ledger’s move to custody Bitcoin and Ethereum-based tokens comes at a time when crypto exchanges are counting loses emanating from hacks. The latest exchange to admit being hacked is DragonEX. Another Exchange, CoinBene, is feared to have suffered a hack although no official statement has been issued so far as the exchange recently switched to an unannounced maintenance.
Will the popularity of the Bitcoin and Ethereum-based tokens custody solution ride on Ledger’s popularity?
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